11 Most Promising Long-Term Stocks According to Analysts

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2. FTAI Aviation Ltd. (NASDAQ:FTAI)

10-Year Revenue CAGR: 40.49%

Number of Hedge Fund Holders: 54

Average Upside Potential as of April 21: 96.24%

FTAI Aviation Ltd. (NASDAQ:FTAI) owns, acquires, and sells aviation equipment for transporting goods and people. It operates in two segments: Aviation Leasing and Aerospace Products. It also engages in the offshore energy business, which consists of vessels and equipment that support offshore oil and gas activities and production.

In Q4 2024, the company’s Aerospace Products made $117.3 million in adjusted EBITDA at an overall EBITDA margin of 34%. This was a sequential increase of 15% and a year-over-year jump of 115%. The company is focused on ramping up production at its facilities in Montréal and Miami, as well as commencing operations at its new maintenance facility in Rome.

FTAI Aviation Ltd. (NASDAQ:FTAI) anticipates EBITDA to be between $600 and $650 million in 2025. The company’s maintenance approach is centered on green time optimization and using a large owned engine fleet, and allows it to offer lower fixed prices and minimal downtime to small and medium-sized airlines operating CFM56 and V2500 engines, within a large addressable market.

Tourlite Capital Management noted the company’s over 200% stock increase in 2024 and stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q4 2024 investor letter:

“FTAI Aviation Ltd. (NASDAQ:FTAI) emerged as one of the top-performing stocks in 2024, with its share price increasing over 200%. This performance was driven by robust aerospace after-market tailwinds and the growing market share of its PMA parts business, as the company consistently exceeded market expectations quarter after quarter.

The fourth quarter brought significant developments for FTAI, despite a share price retracement in the last five weeks of the year. In November, the company announced FAA approval for its second PMA engine part. In late December, FTAI announced a Strategic Capital Initiative (SCI) with private credit investors to acquire mid-life aircraft, tapping into a potential $30 billion market as aircraft lessors offload older planes as they make new purchases. Under this arrangement, FTAI secures the rights for the engine maintenance contracts, which are projected to generate ~$200 million in incremental annual aerospace EBITDA by 2026 when fully ramped.

When we analyze the SCI and factor in the multiple revenue streams (management fee, incentive fee and maintenance revenue), we believe the return on invested capital will be 80%+. We calculate a combined ~$2.50 per share of earnings from SCI. If the first SCI deal is successful, FTAI could raise one of these 7-year funds a year…” (Click here to read the full text)

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